Jakarta – Pertamina New & Renewable Energy (Pertamina NRE) managed to control 93% of the carbon credit market share in Indonesia with sales reaching 565 thousand tons of CO2e until July 2024. This success reflects the increasing awareness of industry players on climate change issues and efforts to reduce emissions in corporate operations.
Pertamina NRE became the first carbon credit seller at the launch of IDX Carbon’s inaugural trade on September 26, 2023. At that time, the volume of carbon credits traded reached around 864 thousand tons of CO2e, with the volume sold in the first trade reaching around 460 thousand tons of CO2e.
Corporate Secretary of Pertamina NRE, Dicky Septriadi, stated that Pertamina NRE is strongly committed to decarbonisation efforts in Indonesia.
“Pertamina NRE has a strong commitment to decarbonisation efforts in Indonesia, one of which is through carbon credit trading to support emission reduction, especially in the industrial sector. We have various green and clean energy portfolios that have the potential to become sources of carbon credits. We are very open and enthusiastic to work with industries that have aspirations to reduce emissions from their operational activities,” Dicky said in an official statement, Wednesday, August 7.
Pertamina NRE’s main source of carbon credits currently comes from the Lahendong Geothermal Power Plant (PLTP) Units 5 and 6, which are managed by PT Pertamina Geothermal Energy Tbk (PGE). Carbon credits from the Lahendong geothermal power plant amounted to approximately 864 thousand tons of CO2e, which were generated during the 2016-2020 period and have met the national standards set by the Ministry of Environment and Forestry (KLHK).
This carbon trading initiative is expected to contribute significantly to the fulfilment of Indonesia’s enhanced nationally determined contribution (ENDC), which targets emission reductions of 31.89 per cent without international support and 43.2 per cent with international support. Dicky explained that adequate regulatory support is needed to establish a strong carbon business ecosystem in Indonesia.
Apart from PLTP, Pertamina NRE will also develop carbon credits from other clean energy sources. One potential project is the Java-1 Steam Gas Power Plant (PLTGU), which is estimated to generate around 3 million tons of CO2e annually. Pertamina NRE is also in the validation process for carbon credits from the Sei Mangkei Biogas Power Plant (PLTBg), with estimated carbon credits of 150 thousand tons CO2e for the period 2021-2023 and 200 thousand tons CO2e for the period 2024-2027.
“Pertamina NRE continues to expand its clean energy portfolio to provide broader carbon credit solutions and support the achievement of Indonesia’s emission targets,” Dicky added. With the huge potential in Indonesia’s clean energy and forest sectors, Pertamina NRE is optimistic that it can continue to lead the domestic carbon credit market and contribute to global climate change mitigation. (Hartatik)
